Ensco CEO Gets $7.7M In Total Pay, An 8 Pct Jump

Ensco said its compensation program aims to competitively attract talent in the sector by referencing the median of a peer group of oilfield service companies of a similar size, such as BJ Services Co., Cameron International Corp. and Noble Corp. to name a few, and historical financial performance. Cash bonuses, aimed to reward achieved goals, are based on predetermined targets, and in recent years have fallen below the median of peer group companies. The company provides stock awards to align executives with its long-term goals. Due to the global economic downturn, the company's compensation committee said there will be no increases in executive base salaries in 2009.

In 2008, Ensco's profit rose to $1.15 billion, or $8.11 per share, compared with $992 million, or $6.73 per share, a year earlier. Revenue rose 17 percent to $2.45 billion from $2.09 billion in 2007.

Like other drilling companies, as commodity prices tumbled in the second half of 2008 and demand for energy products sank, the sector took a beating and stocks sharply fell. For the full year, Ensco shares plunged more than 50 percent to close the year at $28.39.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the past fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.